On the Friday heading into Memorial Day weekend, the USPS announced that it had filed notice with the Postal Regulatory Commission to request price increases that would raise overall Market Dominant product and service rates by about 6.9 percent.
First-Class Mail rates would increase by 6.8 percent to offset ongoing losses resulting from First-Class Mail volume, which has dropped 32 during the past decade and is projected to decline 36 percent through 2030.
The proposed postage increases are part of the 10-year “Delivering for America” plan, which USPS leadership expects will lead to financial sustainability and improved service. The USPS claims the changes being implemented will enable the design of a more efficient processing and transportation network that is capable of ensuring 95 percent on-time delivery of mail and packages.
If approved, the changes would take effect on August 29, 2021. Proposed mailing service postage rates include:
| Product | Current Price | Planned Price |
| Letters (1 oz) | 55 cents | 58 cents |
| Letters additional ounce(s) | 20 cents | 20 cents (unchanged) |
| Letters (metered 1 oz) | 51 cents | 53 cents |
| Domestic Postcards | 36 cents | 40 cents |
| Flats (1 oz) | $1.00 | $1.16 |
| Outbound International Letters (1 oz) | $1.20 | $1.30 |
| Non-Saturation Letters (ads, solicitations) | 21.2 cents | 22.6 cents |
| Non-Saturation Flats (catalogs) | 31 cents | 33.9 cents |
| Saturation Letters (coupons | 16.1 cents | 16.5 cents |
| Saturation Flats (flyers, coupons) | 17 cents | 17.5 cents |
The potential changes to both postage pricing and operating procedures reinforce the importance of partnering with a direct mail and print provider that knows how to optimize costs while working within the framework of USPS requirements.
Marketers should be taking steps today to understand the impact of these changes and how to keep costs under control while maximizing direct mail ROI. Clean data, audience segmentation, response tracking and analysis, channel integration, testing, and other factors have never been more important to the success of direct mail marketing.
To learn more about postage rate increases proposed by the USPS and discuss what you can do to get the best possible results from your direct mail campaigns, contact us today and unleash the power of Digital Dog Direct.
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